European new car registrations growth slowed in September

New car registrations across Europe recorded the slowest rate of growth this year, in September.

The number of new cars sold in the continent was still 10% ahead of September 2022's performance, however.

Figures from Jato Dynamics show demand for electric vehicles (EVs) was high. Last month, EV registrations totalled 186,380 units, accounting for 16.1% of the market – an increase of 13% when compared to September 2022.

Felipe Munoz, global analyst at JATO Dynamics, said: “Despite financial pressures such as rising inflation and interest rates, alongside geopolitical uncertainty, the European car market has seen consistent growth over the course of this year. While EVs have been a key driver of this growth, it is unlikely that this will be sustained for much longer, considering truly affordable ICE alternatives now remain a rarity in the market.”

Year to date, a total of 1,465,249 new electric passenger cars have been registered, marking a 47% increase when compared with the same period last year.

Munoz added: “Despite higher prices, these vehicles have a considerable presence within the market. Now, we will only see this growth continue if and when cheaper alternatives arrive.”

The popularity of SUVs continued to support BEV sales, accounting for 60% of total BEV volumes in September. The market share of these vehicles was bolstered by strong sales of the Tesla Model Y (pictured), Europe's best-selling EV.

Munoz said: “It’s very likely that the Tesla Model Y will finish the year as Europe’s most registered new vehicle. Considering Tesla’s strong performance across its range, the brand also has the potential to shock the industry by outselling legacy local OEMs such as Fiat or Citröen.”

Despite the success of the Model Y, Tesla’s registrations fell by 19% in September due to declining demand for the Model 3. The midsize saloon is currently undergoing a facelift which can dampen sales performance in the short term as consumers wait for the arrival of the new model. Tesla registered its millionth vehice in Europe, this month.

MG registered more than 26,500 units, marking a 91% increase on the same month last year. This takes the brand’s year-to-date volume to almost 163,200 units, up by 126%. In terms of volume, MG is already outperforming competitors including Suzuki, Mazda, and Mini. Last month, the MG 4 was Europe’s second most registered electric vehicle – its best performance since being introduced in September 2022. Over this period, MG has registered more than 57,800 units of this compact hatchback.